9th Feb 2015 14:51
LONDON (Alliance News) - Chinese logistics company China Chaintek United Co Ltd on Monday said it expects both its profit and revenue for 2014 to be up on last year, but "slightly" below market forecasts.
The company said it will report a pretax profit of CNY287 million for 2014, less than 1% ahead of 2013, and revenue of CNY364 million, which it said represents growth of just under 4% year-on-year.
The company said it will announce its full-year results on March 16.
"Both [are] slightly below market forecast," the company said in a trading update. "The group continues to be highly cash-generative," it added.
China Chaintek said revenue from its logistics service business grew by a "modest" 3.2% over 2013, boosted by new customer wins, while its inventory solutions business is expected to show a 7.3% increase in revenue.
At the end of last year, the company exchanged contracts for the purchase of another transit warehouse for its logistics services division, and it hopes the expansion will solve its capacity issues.
"This facility is expected over time to help resolve the capacity issue at Chaintek's current transit warehouse and to avoid increasingly stringent daytime travel restrictions on larger lorries used by the group's third party transport carriers. Operations at the new facility have commenced, but divisional revenues are expected to remain broadly static during 2015 despite the increase in operational expense. In the longer term, the facility should allow the group to capture an anticipated increase in demand from the market," the company said.
China Chaintek shares were up 1.5% Monday afternoon at 44.65 pence.
By Rowena Harris-Doughty; [email protected]; @rharrisdoughty
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